Loyalty Must Offer Real-Time Value to Survive Menu Sticker Shock

While value-seeking restaurantgoers look to loyalty programs, discounts alone aren’t enough to put butts in seats, overcome high menu prices or guarantee brand allegiance, according to data from PAR Technology.

“Discounts remain one of the strongest drivers of dining decisions, but guests are increasingly focused on how and when those savings show up,” said Joe Yetter, General Manager of PAR Engagement. “People are actively comparing loyalty offers and are willing to switch restaurants for better value, especially when discounts are readily available. What resonates most are offers that feel immediate and worthwhile, rather than delayed or overly complex. Brands that deliver savings in a clear, timely way are better positioned to stay top of mind without overloading guests.”

Among the key findings:

• Nearly 70 percent of consumers maintain or increase loyalty program usage during economic uncertainty. Yet, 45 percent still skip dining out entirely because base menu prices remain too high.
• Almost half of consumers routinely compare loyalty offers before choosing where to eat with 25 percent saying they would switch to a less-preferred restaurant for better perks, while another 47 percent could be swayed depending on the deal.
• Discounts (40 percent) and free items/upgrades (22 percent) remain most influential. Better rewards value (54 percent), superior food quality (45 percent), and ease-of-use (30 percent) drive program switching.
• Consumers favor smarter rewards (31 percent) or no AI features (26 percent). Deep automation and predictive tools score lower, signaling a preference for enhancements that simplify, not overhaul, the loyalty experience.

Read more at Modern Restaurant Management